Question

Management of Kunkel Company

The management of Kunkel Company is considering the purchase of a $44,000 machine that would reduce operating costs by $10,000 per year. At the end of the machine’s five-year useful life, it will have zero salvage value. The company’s required rate of return is 11%.

 

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.

 

Required:

1. Determine the net present value of the investment in the machine.

2. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine?


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Answer #1

The 24 consonant sounds comprise six stops (plosives): p, b, t, d, k, g; the fricatives f, v, θ (as in thin), ð [eth] (as in then), s, z, [esh] (as in ship), Ʒ (as in pleasure), and h; two affricatives: t∫ (as in church) and dƷ (as the j in jam); the nasals m, n, ŋ (the sound that occurs at the end of words such as young); the lateral l; the postalveolar or retroflex r; and the semivowels j (often spelled y) and w. These remain fairly stable, but Inland Northern American differs from RP in two respects: (1) r following vowels is preserved in words such as door, flower, and harmony, whereas it is lost in RP; (2) t between vowels is voiced, so that metal and matter sound very much like British medal and madder, although the pronunciation of this t is softer and less aspirated, or breathy, than the d of British English.

answered by: Gamesome Goshawk
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